Citi maintains Neutral on Electronic Arts with $139 target

On Tuesday, Citi reiterated its Neutral rating on Electronic Arts (NASDAQ:EA) shares, maintaining a price target of $139.00. According to InvestingPro data, EA currently trades at $143, with analyst targets ranging from $125 to $179, reflecting mixed market sentiment. The stock carries a consensus recommendation of 2.41, indicating a moderate buy stance. The firm’s analyst pointed to the expectation that the future releases of FC and Battlefield will catalyze bookings growth for the company in the fiscal year 2026.

Electronic Arts had previously revised its guidance downward for the upcoming quarter and for the full fiscal year 2025, attributing the adjustment to a less successful launch of Dragon Age and a deceleration in EA FC’s performance. Despite these setbacks, the analyst anticipates a recovery in FC bookings and the potential release of a new Battlefield game to spur growth in fiscal year 2026. InvestingPro analysis shows EA maintains strong financial health with a robust current ratio of 1.38 and more cash than debt on its balance sheet, providing flexibility to weather near-term challenges.

The analyst emphasized that while a decline is projected for Apex Legends in the next fiscal year, the overall bookings are expected to increase. This outlook assumes the timely release of Battlefield, which, if delayed, could result in guidance for fiscal year 2026 falling short of current market estimates.

Citi’s maintained price target of $139 is based on approximately 19 times their non-GAAP earnings per share estimate for 2026. The analyst concluded by affirming the Neutral rating, indicating a stance that Electronic Arts’ stock is expected to perform in line with the market or sector averages in the near term.

In other recent news, Electronic Arts has been the focus of several analyst updates following its recent financial disclosures. TD Cowen revised its price target for Electronic Arts to $160, down from $183, while maintaining a Buy rating. This adjustment comes after the company’s third-quarter results met expectations, though the firm reduced its FY25 bookings and earnings estimates. UBS also lowered its price target for the company from $160 to $138, maintaining a Neutral rating due to weaker performance in global football and Dragon Age, which led to a downward revision of fiscal 2025 profit guidance by approximately 15%.

DA Davidson reiterated a Neutral rating with a $140 price target, highlighting mixed performance with increased engagement in "FIFA 25" but a decline in "Apex Legends." Benchmark analysts cut their price target to $140 from $163 while keeping a Buy rating, citing challenges in the Global Football segment and potential stabilization in fiscal 2026. Despite these adjustments, Benchmark sees potential for future growth with the upcoming launch of Battlefield, contingent on the game’s quality and release timing.

The various analyst firms suggest a mix of caution and optimism, with some expressing confidence in Electronic Arts’ long-term prospects despite current challenges. The company’s strategic moves, including updates to popular titles and new game releases, are seen as critical factors for future performance. Overall, these recent developments reflect the dynamic nature of Electronic Arts’ market position and the gaming industry’s competitive landscape.

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